Maintain long positions as rebound is still developing. The FCPO performed positively in the latest session. It settled the day MYR13 higher at MYR2,027 – the low and high were posted MYR1,998 and MYR2,038. The positive session marked the commodity’s third consecutive positive closing, after testing the MYR1,940 mark recently. This reinforces our positive bias on the commodity to develop a deeper rebound, after the recent weeks’ steep retracement that pushed its daily RSI into an oversold threshold. At the very least, we are expecting this rebound to test both the 30-day and 50-day SMA lines. Hence, we maintain our positive trading bias.

With the rebound likely to extend, traders should remain in long positions. We initiated these positions at MYR2,057, or the closing level of 22 Nov. A stop-loss can be placed below MYR1,940.

The immediate support is expected to emerge at MYR1,940, the low of 27 Nov. This is followed by MYR1,863, the low of 25 Aug 2015. Conversely, the immediate resistance is set at MYR2,066, the high of 16 Nov. This is followed by MYR2,137, the low of 20 Sep.

Source: RHB Securities Research - 30 Nov 2018